Most people are taking advantage of the dropping oil prices and are enjoying filling up at the gas stations now. But for some, especially those who work in the oil and gas industry, it has a very negative impact most seen by our neighbours in Alberta. How will the lowering oil prices affect house prices? Will they affect prices across the country?
Calgary is Alberta’s largest city and has had house prices jump 6% over the last year. The result of the lowering oil prices will likely slow the rapid house price increase and is expected to rise by 3% in 2015 making the average house price in Calgary $497,500. The expected decrease will come from buyers becoming wary of the market and waiting things out to see if the average house price will decrease even further.
Although most agree that unless the low oil prices persist for a longer period of time, Calgary won’t see a decline in average house prices but rather a slowing down from the rapid increases they’ve seen in the past. The rapid increase in average house price that they’ve seen as of late and now this decrease in oil will cause Calgary to move into a more balanced market.
Across Canada, the effects won’t be seen unless jobs are cut and the overall economy which isn’t anticipated for 2015. The rest of Canada however, is supposed to see smaller house prices in 2015 but it won’t be due to the lower oil prices.
Higher inventory levels in many cities, and as some places switch to more affordable condominiums, are forecast to be the major contributing factor in centres seeing a average house price increase. 2014 saw a 6.2% increase nationally in price and 2015 is anticipated to bring a 2.5% increase.
Saskatoon is forecast to see a static market, not a increase or a decline in average house price, for 2015. Prices are expected to remain at $333,900 for the year. Winnipeg is also forecast to remain the static while Regina and Edmonton are expected to see a similar price increase of around 4% making the average house price $346,500 and $389,900 respectively.
Want to know more about what’s going on in the Saskatoon real estate market? Contact me today and I’d be glad to answer any questions you might have.
Saskatoon real estate agent
Century 21 Fusion